row level lock issue

1. autocomit set to true
2. transaction isloation level set to none
3. two statements executed . one does read on a row. the second one does update on the same row.
4. we donot close the connection.
5.Using a database client, we check using a select that the row was correctly updated.
6. do a update on the same query using the database client (such as toad)
7. the update query keeps running forever.

Looks like a lock on that row is being held but no idea who is holding and why? any clue?

How have you managed to set transaction isolation level to none? This is only going to apply if you are using a database that does not support transactions. I can only think of two database (Access and MySQL's MyISAM database engine) that allow data access without transaction; are you using either of those?